I'm almost willing to believe this was a statement Mundie made that falls in one of the following categories:
* It was a joke
* It was a statement taken out of context
* A bad joke taken out of context
If this is something Mundie is serious about then this is a frightening insight into how Microsoft folks think. Besides being an outright assault onto the First Amendment there's so many arguments against this that it seems like a harmless strawman argument.
It's significant to note that Microsoft are probably largely responsible for introducing the hordes of clueless newbies onto the Internet -- moreso than any other factor, EVEN AOL. Given their culpability in this mess I have a suggestion, an amendment to their idea if you will:
A mandatory Internet-use license that is ONLY compulsary if you are a Microsoft Windows end user.
Lets see how much Microsoft likes the "Internet License" idea then.